Big data is delivering supplier networks with enhanced data accuracy, clarity and insights leading to more circumstantial intelligence shared across supply chains.
Cutting-edge manufacturers are outsourcing 80% or more of their supplier network activity, utilising big data and cloud-based technologies to get beyond the limitations of Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) systems.
For manufacturers whose core business activities are based on product lifecycles and speed, ERP systems are a logjam. Developed for delivering order, shipment and transactional data, these systems don’t have the capability of scaling to meet the challenges supply chains face today.
While many companies today haven’t yet adopted big data into their supply chain operations, the following factors taken together will be the catalyst that get many moving on their journey.
The ten ways big data is transforming supply chain management include:
- The scale, scope and depth of data supply chains are generating today is accelerating, providing ample data sets to drive contextual intelligence.
- Enabling more complex supplier networks that focus on knowledge sharing and collaboration as the value-add over just completing transactions.
- Big data and advanced analytics are being integrated into optimization tools, demand forecasting, integrated business planning and supplier collaboration & risk analytics at a quickening pace.
- 64% of supply chain executives consider big data analytics a disruptive and important technology, setting the foundation for long-term change management in their organizations.
- Using geo-analytics based on big data to merge and optimize delivery networks.
- Big data is having an impact on organizations’ reaction time to supply chain issues (41%), increased supply chain efficiency of 10% or greater (36%), and greater integration across the supply chain (36%).
- Embedding big data analytics in operations leads to a 4.25x improvement in order-to-cycle delivery times, and a 2.6x improvement in supply chain efficiency of 10% or greater.
- Greater contextual intelligence of how supply chain tactics, strategies and operations are influencing financial objectives.
- Traceability and recalls are by nature data-intensive, making big data’s contribution potentially significant.
- Increasing supplier quality from supplier audit to inbound inspection and final assembly with big data.
To read the full article by Louis Columbus, Please Visit Forbes.com.